LexisNexis® Legal Newsroom
Mealey's Securities/D&O Liability - Judge: Defendants' Alleged Misrepresentations Not Actionable In Securities Suit

NEWARK, N.J. - Lead plaintiffs in a securities class action lawsuit against a pharmaceutical company and its CEO have failed to plead any material misstatements or omissions in arguing that the defendants misrepresented that the company's new drug was expected to gain U.S. Food and Drug Administration approval in violation of federal securities laws, a federal judge in New Jersey ruled May 19 in granting the defendants' motion to dismiss (Blake Bauer v. Eagle Pharmaceuticals Inc., et al., No. 16-3091, D. N.J., 2017 U.S. Dist. LEXIS 76247).

Mealey's Securities/D&O Liability - Judge: Pension Fund Cured Scienter Pleading Deficiency Against Company, CEO

SAN FRANCISCO - In granting in part and denying in part a motion to dismiss, a federal judge in California on May 17 held that a pension fund has cured its pleading deficiencies and properly shown that a semiconductor producer and its CEO acted with the requisite scienter in misrepresenting the company's key business metrics as required under federal securities laws (Daniel Luna v. Marvell Technology Group Ltd., et al., No. 15-5447, N.D. Calif., 2017 U.S. Dist. LEXIS 75262).

Mealey's Securities/D&O Liability - Elements Of Securities Law Claim Properly Pleaded, GoPro Investor Says

OAKLAND, Calif. - Dismissal of an amended securities class action complaint is not proper because the lead plaintiff in the action has properly pleaded an actionable misrepresentation or omission, scienter and loss causation, the lead plaintiff argues in a May 15 opposition brief (Anton Bielousov v. GoPro Inc., et al., No. 16-6654, N.D. Calif.).

Mealey's Securities/D&O Liability - Panel Affirms Dismissal Of Securities Class Action For Failure To Plead Scienter

BOSTON - A federal district court judge did not err in dismissing a shareholder class action lawsuit because the lead plaintiff failed to plead scienter in making its federal securities law claims against a drug maker and certain of its executive officers, a First Circuit U.S. Court of Appeals panel ruled May 12 in affirming the lower court's decision (In re Biogen Inc. Securities Litigation, No. 16-1976, 1st Cir., 2017 U.S. App. LEXIS 8475).

Mealey's Securities/D&O Liability - Panel: Judge Did Not Engage In Prohibited Fact Finding In Securities Suit

SAN FRANCISCO - A federal judge did not err in dismissing a lead plaintiff's second amended complaint in a securities class action lawsuit against LifeLock Inc. and certain of its executive officers because the lead plaintiff failed to plead any material misrepresentations or omissions in pleading their federal securities law claims, a Ninth Circuit U.S. Court of Appeals panel ruled May 11 in affirming (In re LifeLock Inc. Securities Litigation, No. 15-16885, 9th Cir., 2017 U.S. Dist. LEXIS 8386).

Mealey's Securities/D&O Liability - Investor Failed To Cure Pleading Issues In LeapFrog Securities Suit, Judge Rules

SAN FRANCISCO - An investor failed to plead falsity or scienter in alleging that LeapFrog Enterprises Inc. and members of its board of directors misrepresented the company's business and financial condition in documents released as part of a proposed merger deal, a federal judge in California ruled May 9 in granting the defendants' motion to dismiss a second amended complaint without leave to amend (Pete J. Manger v. LeapFrog Enterprises Inc., et al., No. 16-1161, N.D. Calif.; 2017 U.S. Dist. LEXIS 70893).

Mealey's Securities/D&O Liability - Barclays Agrees To Pay More Than $97M To Settle SEC Enforcement Action

WASHINGTON, D.C. - Barclays Capital Inc. will pay more than $97 million to settle claims filed by the Securities and Exchange Commission alleging that the broker-dealer overcharged investors from September 2010 to March 2015 for services not provided, according to an order instituting cease-and-desist proceedings filed May 10 by the SEC (In the Matter of Barclays Capital Inc., No 3-17978, SEC).

Mealey's Securities/D&O Liability - Judge Grants Preliminary Approval Of $165M Settlement In MBS Suit

NEW YORK - A federal judge in New York on May 9 granted preliminary approval of a $165 million securities class action settlement between shareholders and certain underwriters of mortgage-backed securities (MBS) alleged to have taken part in a fraudulent scheme to misrepresent the underwriting standards they used in the offering documents for a series of MBS (New Jersey Health Fund v. Royal Bank of Scotland Group PLC, et al., No. 08-5310, S.D. N.Y.).

Mealey's Securities/D&O Liability - Panel Affirms Court's Dismissal Of Securities Suit For Failure To Plead Falsity

SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against a tech company and certain of its current and former executive officers failed to plead any of the required elements of falsity as required pursuant to the U.S. Supreme Court's ruling in Omnicare Inc., et al. v. The Laborers District Council Construction Industry Pension Fund and The Cement Masons Local 526 Combined Funds, a Ninth Circuit U.S. Court of Appeals panel ruled May 5 in affirming a lower court's dismissal ruling (City of Dearborn Heights Act 345 Police & Fire Retirement System v. Align Technology Inc., et al., No. 14-16814, 9th Cir., 2017 U.S. App. LEXIS 8005).

Mealey's Securities/D&O Liability - Parties Seek Joint Stay In Securities Suit To Negotiate $97.5M Settlement

TYLER, Texas - Shareholders and defendants in a securities class action lawsuit against retailer JCPenney Co. Inc. and certain of its executive officers have provisionally agreed to a $97.5 million settlement on claims that the defendants misrepresented the company's business and financial condition in violation of federal securities laws, according to a joint motion to stay all deadlines and notice of settlement filed May 5 in a Texas federal court (Alan B. Marcus v. JCPenney Company Inc., et al., No. 13-0736, E.D. Texas).

Mealey's Securities/D&O Liability - Partial Stay Of Notice Recommended In Big Lots Securities Class Action

COLUMBUS, Ohio - A federal magistrate judge in Ohio on May 4 recommended that a motion to stay dissemination of class notice in a securities class action lawsuit against broad line closeout retailer Big Lots Inc. and certain of its executive officers be partially granted, ruling that class representative should prepare the notice but withhold distributing it until a federal circuit court has had a chance to resolve a petition for permissive leave to appeal (Alan Willis v. Big Lots Inc., et al., No. 12-0604, S.D. Ohio, 2017 U.S. Dist. LEXIS 68233).

Mealey's Securities/D&O Liability - Majority Of 10th Circuit Judges Denies Rehearing In SEC ALJ Challenge Suit

DENVER - A majority of the 10th Circuit U.S. Court of Appeals on May 3 denied the Securities and Exchange Commission's petition for rehearing and rehearing en banc, rejecting the commission's argument that a 10th Circuit panel erred in holding that the SEC's administrative law judges (ALJs) are inferior officers and subject to appointment pursuant to the appointments clause of the U.S. Constitution (David F. Bandimere v. Securities and Exchange Commission, No. 15-9586, 10th Cir.).

Mealey's Securities/D&O Liability - Credit Suisse Agrees To Pay $400M To Settle NCUA MBS Claims

KANSAS CITY, Kan. - Credit Suisse Securities (USA) LLC will pay $400 million to settle claims with the National Credit Union Administration (NCUA) that is mispresented the investment quality of residential mortgage-backed securities (MBS) it underwrote and sold to three failed credit unions, according to an NCUA press release issued May 3 (National Credit Union Administration Board v. Credit Suisse Securities [USA] LLC, et al., No. 12-2648, D. Kan.).

Mealey's Securities/D&O Liability - Investor Pleaded Scienter, Loss Causation In Securities Lawsuit, Judge Rules

SAN JOSE, Calif. - A shareholder has shown that defendants in a securities class action lawsuit acted with deliberate recklessness in misrepresenting a company's business and financial condition in violation of federal securities laws, a federal judge in California ruled May 1 in denying the defendants' motion to dismiss (In re Finisar Corp. Securities Litigation, No. 11-1252, N.D. Calif., 2017 U.S. Dist. LEXIS 66229).

Mealey's Securities/D&O Liability - NCUA Recovers $445M From UBS To Settle MBS Claims

ALEXANDRIA, Va. - UBS Securities LLC will pay $445 million to the National Credit Union Administration (NCUA) to settle claims that UBS sold residential mortgage-backed securities (MBS) to two failed credit unions in violation of federal securities laws, according to an NCUA press release issued May 1 (National Credit Union Administration Board v. UBS Securities LLC, No. 12-2591, D. Kan.).

Mealey's Securities/D&O Liability - Investor Failed To Plead Securities Claims In GoPro Class Action, Judge Rules

SAN FRANCISCO - The lead plaintiff in a securities class action lawsuit against GoPro Inc. and certain of its current and former executive officers failed to plead any material misrepresentations or omissions or scienter in making his federal securities laws claims, a federal judge in California ruled May 1 in granting the defendants' motion to dismiss (Joseph Bodri v. GoPro Inc., et al., No. 16-0232, N.D. Calif.).

Mealey's Securities/D&O Liability - Judge: Investor Pleaded Actionable Misstatements In Securities Class Action

SAN DIEGO - Defendants in a securities class action lawsuit against a drug company and certain of its current and former executive officers have failed to show that the lead plaintiff failed to plead any material misrepresentations or omissions in arguing that the defendants concealed adverse clinical test results for its development of a diet drug in violation of federal securities laws, a federal judge in California ruled April 28 in denying the defendants' motion to dismiss (Todd Schueneman, et al. v. Arena Pharmaceuticals Inc., et al., No. 10-1959, S.D. Calif., 2017 U.S. Dist. LEXIS 65275).

Mealey's Securities/D&O Liability - Investor Sues Emergency Room Operator Over Alleged Misrepresentations

TYLER, Texas - A shareholder filed a securities class action lawsuit on April 27 in Texas federal court, alleging that an operator of a network of free-standing emergency rooms and certain of its current and former executive officers and directors misrepresented the company's business condition in violation of federal securities laws (Sascha Troll v. Adeptus Health Inc., No. 17-0241, E.D. Texas).

Mealey's Securities/D&O Liability - Harman International To Pay More Than $28M To Settle Securities Class Action Suit

WASHINGTON, D.C. - Audio products and electronic systems manufacturer Harman International Industries Inc. will pay more than $28 million to settle claims that it and certain of its current and former executive officers concealed issues with the company's line of personal navigation devices (PND) in violation of federal securities laws, according to a motion for preliminary approval of settlement filed April 19 in the District of Columbia federal court (In re Harman International Industries Inc. Securities Litigation, No. 07-1757, D. D.C.).

Mealey's Securities/D&O Liability - High Court Hears Oral Arguments In Appeal Of SEC Enforcement Action Ruling

WASHINGTON, D.C. - The U.S. Supreme Court on April 18 heard oral arguments in an appeal of a 10th Circuit U.S. Court of Appeals ruling that determined that disgorgement is not a penalty or forfeiture pursuant to 28 U.S. Code Section 2462, U.S.C. 2462, and thus, is not subject to a five-year statute of limitations (Charles R. Kokesh v. Securities and Exchange Commission, No. 16-529, U.S. Sup.).

Mealey's Securities/D&O Liability - Supreme Court Hears Oral Argument In American Pipe Tolling Challenge

WASHINGTON, D.C. - The U.S. Supreme Court on April 17 heard oral arguments in an appeal of a Second Circuit U.S. Court of Appeals ruling affirming that shareholders that filed a securities class action lawsuit after opting out of settlement class against the same defendants were barred from doing so as their claims were outside the statute of repose (California Public Employees' Retirement System v. Moody Investors Service Inc., et al., No. 16-373, U.S. Sup.).

Mealey's Securities/D&O Liability - Federal Judge Denies Securities Broker's Motion To Bar Expert Testimony

WEST PALM BEACH, Fla. - An expert is qualified to testify regarding a rule under Financial Regulatory Authority Inc. (FINRA), a Florida federal judge ruled April 14, denying a motion to exclude filed by a securities broker-dealer (UBS Financial Services Inc. v. Bounty Gain Enterprises Inc., No. 14-81603, S.D. Fla., 2017 U.S. Dist. LEXIS 57502).

Mealey's Securities/D&O Liability - Drug Company Hit With Shareholder Suit Over Proposed Merger Deal

BOSTON - A pharmaceutical company and its board of directors issued a proxy statement in connection with a proposed merger deal that contained several misrepresentations and omitted important facts surrounding the proposed transaction in violation of federal securities laws, an investor argues in an April 11 securities class action complaint filed in Massachusetts federal court (Stephen Bushansky v. Tokai Pharmaceuticals Inc., et al., No. 17-10621, D. Mass.).

Mealey's Securities/D&O Liability - Defendant In Insider-Trading Suit Seeks Smaller Penalty Amount

ATLANTA - The Securities and Exchange Commission has sought an excessive amount of civil penalty, and a federal judge should require a defendant in an insider-trading lawsuit to pay only a portion of that amount, the defendant argues in an April 7 opposition brief filed in Georgia federal court (Securities and Exchange Commission v. Thomas D. Melvin Jr., et al., No. 12-2984, N.D. Ga.).

Mealey's Securities/D&O Liability - Citibank Moves For Summary Judgment In Securities Lawsuit

NEW YORK - Trustees cannot be held liable for not pursuing enforcement actions against a party that is deemed to be bankrupt at the time the trustee discovers facts giving rise to a claim, a trustee argues in an April 7 motion for summary judgment filed in a shareholder derivative and securities class action lawsuit filed in New York federal court (Fixed Income Shares: Series M, et al. v. Citibank N.A., et al., No. 14-9373, S.D. N.Y.).